1998 Taurus ignition switch turns and seems to go in all positions. However the car will not start and the power stays on. I looked at the ignition and it seems like the internal rods move when you turn the switch in all positions. Could this be the relay switch at the bottom of the steering column?

There is actually the switch on the column down just under the dash. The rod that you see is what moves the switch. The switch is bad. I would suggest go buy one then you will be able to identify the one on your car that is bad.

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Is it automatic or manual assuming automatic for the moment
If it is automatic try to start it in ever gear by holding the ignition key all the way on and pulling the selector slowly between the ranges
If the starter catches and engine starts the inhibitor switch needs adjusting if not go to the next step which is for automatic & manuals. bridge the solenoid power wire with the main battery wire.
If this causes it to start with the ignition in the on position then manuals may have a faulty ignition switch automatics may have the inhibitor switch wires disconnected or a faulty ignition switch.
if the solenoid goes click click faulty solenoid or if no starter action happens then the the starter is cactus

Sounds like the ignition switch is broken. It is further down the steering column on the bottom side. The key switch pushes a piece of plastic to pull or push on the switch. Sometimes it is the this piece that brakes.

Easiest fix it it is the plastic actuator rod is to buy a used steering column and replace everything. You will have to get it re keyed to match you original set. Or if you already got your new key switch re keyed use that.

These pics are from a 1997 column but they are very similar to the 1995.

sound like you might need to change the key switch .could be that plunger rod from switch to ignition switch may be lose. Best way to determine the problem is to take it apart and take a look. had the same problem and mine was the key switch.... hope this helps and good luck...

I would look for a direct short in your wiring harness. It sounds to me like the wires are shorted together under your dash or maybe even out by your starter. Look for a location that contains the ignition wires and the starting circut.

Hello, Take the small wire off the Starter relay and then use a testlight or Voltmeter to test the small wire by attaching one end of your gauge to a ground and the other to the small wire from the relay. It should have no power until you turn the keyswitch to start. If it does have power at other times that is part of the problem.

You have an Interlock switch on the Brake pedal lever under the dash. A lot of times a foot can hit this switch and break it and wires inside can jump and fuse together. Your ignition switch also has adjustments on the column on some models, so when you replace the switch; the rod or cable the switch connects to has to be the correct length. You determine this length by trial and error so that when the Keyswitch is in the START position, the small wire will have power.

With the constant cranking of the starter, I would replace the starter solenoid before attaching the small wire to it. Now that you are positive the small wire is working only in the START position when you attach the small wire the starter should not crank until you want it to.

remove the ground cable from the battery put the key in the ignition turn to on position on the bottom of the ignition housing there is a hole put a 10 penny nail in the hole and push in as you pull the out